Japanese govt promises to back quake-hit companies

[TOKYO] The Japanese government on Monday promised to support companies affected by a series of quakes on the southern manufacturing hub of Kyushu, but declined to say whether the disaster would affect the timing of a sales tax hike next April.

Chief Cabinet Secretary Yoshihide Suga told a news conference that the government would give necessary financial support including companies impacted by the quakes and the government could utilise reserved fund of 350 billion yen (S$4.4 billion) as needed.

The Japanese share market plunged more than 3 per cent on Monday after earthquakes measuring up to 7.3 magnitude struck southwestern Kyushu island, killing at least 42 people and forcing major companies to close factories.

REUTERS